Sources have revealed to the Wall Street Journal that Yahoo! will announce layoffs when they reveal their quarterly earnings tomorrow. The exact number of jobs affected isn’t know but is estimated to be at least 1,000. The move isn’t much of a surprise, however. Last month they hired a consulting firm to help them streamline their operations.

The company, which once boasted the top search engine on the net, has been struggling as of late. Its shares have fallen 32% over the past month, its deal with Google was put on hold due to an FTC investigation, and earlier this year they rejected a takeover bid by Microsoft. Shares entered the week at $12.90 after hitting a 5-year low of $11.37 last week. Microsoft takeover bid was for $33 a share.

Yahoo isn’t the only tech oriented company being hit hard by the economy. HP cut 25,000 jobs and eBay is in the process of reducing its workforce by 10%, but with Google the king on the hill these days, things are looking quite gloomy for Yahoo.